Spending money abroad: exchange rates, card fees and cash

15 October 2026 · 5 min read

The price of your trip depends not only on what things cost, but on how you pay for them. Exchange rate markups, card fees and cash withdrawals can quietly add a few percent to everything you spend. A few habits keep that to a minimum.

Know the real exchange rate

The mid-market rate is the rate banks use to trade with each other, and it’s the one you see in news reports and currency converters. Almost nobody gives it to travellers: banks, card networks and exchange counters add a margin on top, often somewhere between 1% and 5%, and sometimes much more at airports and hotels. Knowing the mid-market rate lets you see how much you’re being charged.

Always pay in the local currency

When a card machine or ATM abroad offers to charge you in your home currency, it’s called dynamic currency conversion. It looks helpful, but the rate is set by the machine’s operator and is usually worse than your own bank’s. Choose to pay in the local currency every time, and let your card do the conversion.

Check your cards before you go

• Foreign transaction fees. Many cards charge a percentage on every purchase abroad. Some travel-friendly cards and accounts don’t; it’s worth checking yours.
• ATM fees. Your bank may charge for foreign withdrawals, and the ATM owner may add its own fee. Fewer, larger withdrawals cost less than many small ones.
• Tell your bank. Some banks block unusual foreign transactions. Check whether you need to tell them you’re travelling, and carry a backup card.

How much cash to carry

It depends on the destination. In some countries cards work almost everywhere; in others small restaurants, markets, temples and taxis can be cash-only. A small daily cash allowance per person covers most situations, topped up from ATMs as you go, rather than carrying a large amount from home. Each of our destination guides includes a suggested daily cash amount and notes on where cards work.

Avoid the worst places to exchange

Airport and hotel exchange counters usually offer the weakest rates. If you want some local cash on arrival, an ATM at the airport is generally better value, as long as you decline the conversion offer.

Budget in your home currency

Exchange rates move, so a budget worked out in a foreign currency can drift. It helps to see the total in your home currency as well. TravelWise shows your trip total in your own currency using daily exchange rates, says when the rates were last updated, and warns you if live rates aren’t available.

Ready to try it? Work out a trip in the trip cost calculator, then open the Exchange rate tab to compare your currency with the destination’s.